In Klaten, Village Head Hoho Reveals No Interest in Developing Savings and Loans in the Village Cooperative: Many Are in Arrears

Reporter The Shiro Copr Report, Tri Widodo

The Shiro Copr, KLATEN - Savings and Loans become one of the business units that can be carried out by the Merah Putih Village Cooperative.

However, the Village Head (Kades) of Purwasaba, Banjarnegara Regency, Yuni Nugroho, also known as Kades Hoho, is not interested in this business unit.

That crazy guy has a reason.

This was revealed by village head Hoho when attending the launch of 80,000 Village/Neighborhood Red and White Cooperatives by President of Indonesia Prabowo Subianto in Bentangan Village, Wonosari District, Monday (21/7/2025).

"We are not interested. Because it would be too risky later," said Village Head Hoho.

The customers of this savings and loan business are also their own people.

His name is well-known, there are residents with bad intentions.

"Someone who doesn't want to return (the loan). It's probably the usual (loan problem)," he said.

This truancy problem is what is making the village officials and head of the village extremely worried.

After all, cooperatives also have to return the credit to the banks that provided the capital.

"The government-designated banks must be paid every month. It's a mess," he said.

Such a lack of member contributions could make the cooperative suffer a loss.

That will also drain the cooperative's finances.

In the village, there has already been a savings and loan institution developed at the sub-district level.

"It's also often stuck. That's why we don't dare take the risk. We don't dare," he added.

The viral case prefers other business units.

Moreover, in the village, there is a business unit that has been developed through the Village-Owned Business Entity (BUMDes).

Starting from Poultry Farming, Cattle Raising, Copy Business, Catfish Cultivation.

"Repair for businesses that will partner with BUMDes," he said.

With this established business cooperation, they will find it easier to carry out and monitor the cooperative's activities.

Merah Putih Village Cooperative: Prabowo's National Initiative to Build the Village Economy from the Grassroots

The Government of the Republic of Indonesia under the leadership of President Prabowo Subianto has initiated the establishment of the Merah Putih Village Cooperative as a strategic effort to build village economic independence, eradicate rent-seeking practices, and create equitable welfare from bottom to top.

This program is designed as a national movement targeting the establishment of cooperatives in more than 70,000 villages and urban neighborhoods throughout Indonesia. These cooperatives are expected to become the backbone of the local economy, managed directly by village communities through mutual cooperation, transparency, and fairness.

"Merah Putih Village Cooperative will be the people's economic vehicle to escape from middlemen, illegal online loans, and other unfair practices," said President Prabowo in a limited meeting in Jakarta, Monday (3/3/2025).

Merah Putih Village Cooperative (Kopdes Merah Putih) is a multi-purpose cooperative established at the village/neighborhood level with an economic service model that addresses the basic needs of the community. This cooperative is expected to become:

• Safe and cheap pawnshop
• Basic needs distribution center with affordable prices
• Village's agricultural and food production warehouse
• Community-based trade and local production facilities

With this cooperative, the government wants to restore the original spirit of cooperatives as the pillar of people's economy, but with a modern approach and integrated into the digital system as well as strict supervision.

Main Function of Kopdes Merah Putih

1. Breaking the chain of usurers and moneylenders

Farmers and village UMKM actors can directly sell their products to the cooperative at fair prices, without having to go through middlemen.

2. Reducing reliance on illegal loans

The cooperative provides a revolving loan scheme with low or no interest, breaking the community's dependence on high-risk online loans.

3. Distribution of cheap daily necessities

The cooperative will sell basic goods and other necessities at a lower price, because they buy directly from large distributors or the government.

4. Promoting rural entrepreneurship

Villagers' heads can also open business units, such as hardware stores, village coffee shops, and local logistics services, according to the potential of each region.

Reasons for the Launch of Merah Putih Cooperative in Klaten

The national launch of the Merah Putih Village Cooperative was held in Desa Bentangan, Wonosari District, Klaten Regency, Central Java, on Sunday (21/7/2025). Klaten was chosen for a reason.

This regency, located in the heart of Java Island, is considered to represent the spirit of economic development from the grassroots: villages.

The inauguration ceremony was attended directly by the elected President Prabowo Subianto, some cabinet ministers, and thousands of village heads from various parts of Central Java.

The presence of national figures and thousands of participants made this launch one of the important moments in the agenda of people-based economic transformation.

There are reasons why Klaten was chosen as the launch location.

Villages in Klaten have shown remarkable initiatives in developing the local economy, food self-reliance, and the spirit of mutual cooperation.

Bentangan Village has already initiated the process of forming a model village cooperative, now serving as a national inspiration, namely Koperasi Merah Putih.

The launch of the Merah Putih Cooperative from Klaten marks the beginning of a new era of more just and balanced economic development in Indonesia, starting from the village.

From Bentangan, a major step was taken towards the economic independence of the sovereign people.

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